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The high ease of entry into retailing _____.
a. generates a great deal of competition for new and existing retailers
b. means that investment per worker in retailing is generally higher than for most
manufacturers
c. contributes to low new-retailer failure rates
d. is due to complex licensing provisions for many retailers
A form of revolving credit is a(n) _____ credit account.
a. extended revolving
b. retailer-generated
c. open
d. option
A retailer that sets prices for goods and services and seeks to maintain them over an
extended time practices _____.
a. variable pricing
b. customary pricing
c. a one-price policy
d. price lining
The retailer with the highest 2010-2011 index score based on the American Customer
Satisfaction Index (ASCI) is _____.
a. Nordstrom
b. J.C Penney
c. Amazon.com
d. Costco
The cross-training of employees is particularly beneficial when a retailer _____.
a. must deal with highly seasonal sales trends
b. is open for short hours
c. is open for long hours
d. has loyal part-time workers
The straight traffic pattern is most widely used by _____.
a. specialty stores
b. gasoline stations
c. department stores
d. supermarkets
The least flexible element of a retailer's strategy is _____.
a. pricing
b. promotion
c. store location
d. product line
A purchase motivation product grouping is designed to _____.
a. place related goods together
b. increase impulse sales
c. effectively cross-merchandise items
d. increase opportunities for cross-selling
A retailer has a collection period of 30 days. Its net sales equals $1,000,000. Its
accounts receivable _____.
a. equals $30,000
b. equals $60,000
c. equals $82,192
d. cannot be determined from the information provided.
A retailer's ending retail book value of inventory is $130,677. A physical inventory (at
retail) equals $133,237. The retailer _____.
a. has a stock overage of $2,560
b. has a short shortage of $2,560
c. switched from FIFO to LIFO
d. switched from LIFO to FIFO
Based on Reilly's law, a city with a population of 40,000 would draw people from how
many times the distance as a city with 10,000 population?
a. 1.5 times
b. 2 times
c. 3 times
d. 4 times
A common major disadvantage of secondary data is the _____.
a. unsuitable units of measurement
b. long time period required to collect data
c. high cost for data collection
d. known source and control over data collection
Verification of a store's sales is required for the property owner in which type of lease?
a. graduated lease
b. straight lease
c. net lease
d. percentage lease
A characteristic of a retail strategy is its _____.
a. focus on past operations and success
b. attention to short-run success
c. attention to personnel availability and training.
d. systematic assessment of the environment to ascertain opportunities and constraints
The Robinson-Patman Act seeks to prevent large retailers from using their bargaining
power to receive unjustifiable cost savings.
The best economic base for a retail area is a diversified economic base.
The success of a scrambled merchandising strategy is commonly limited by a firm's
lack of buying, selling, or servicing expertise in the scrambled merchandise lines.
A fixed dollar rental over the duration of a lease represents the standard terms in a
straight lease.
The retail strategy mix in direct selling emphasizes convenience in shopping and a
personal touch.
In general, retailers prefer an area to have a specialized (as opposed to a diversified)
economic base.
In zero-based budgeting, a firm starts each budget period by evaluating the success of
past budget levels.
Each retailer is unable to earn an adequate return on its investment when an area is
overstored.
